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Dealing with potential clients who turn out to be timewasters
Hello everyone,
I'm interested in hearing from others out there who provide consultancy services to clients (it doesn't matter what field) in their charging practices, whether you do or don't, for initial meetings with prospective clients.
Perhaps it is just me but I have struck more than a few individuals who have called me for a phone consultation and afterward have asked that I meet them in person to discuss their cases in greater detail; something I have generally been more than happy to do. But then either they don't show up to the scheduled appointment or will discuss the matter at length for 1-1.5 hours to dredge as much free information from me as possible and then later call to say they have changed their minds about the investigation.
Perhaps one of the most annoying examples was of an individual with an 'urgent' case who wanted to meet me the following day to discuss the matter... a public holiday... and of course failed to show or subsequently answer her phone.
And while this general sort of behaviour has annoyed me somewhat previously, I have just again struck an individual who has wasted my time by consistently changing days and times for meetings and just not being there on 2 occasions when she had not notified me of any change at all. What made her different from the others is that she would call me back later apologetic and with an excuse for not being there and an expression of still wanting to go ahead with the investigation as it was a 'priority' for her. She led me on for two and a half weeks before I finally said that she is just wasting my time and I cannot help her.
Anyway, I am now considering implementing a policy along the lines of the following:
I am happy to discuss a case with a prospective client by phone for 15-20 minutes. This should be sufficient time to give the prospective client enough information to make a decision as to whether they hire us or not.
If they then want to meet to discuss the matter at greater length I will expect payment of my usual minimum retainer (usually 2 hours billing) upon my arrival. This will be credited towards their account if the investigation continues but is non-refundable if they change their mind.
Perhaps this is too mercenary and may put off potential clients but I value my own time and do not like to have it wasted.
How do others deal with this problem?
I'm interested in hearing from others out there who provide consultancy services to clients (it doesn't matter what field) in their charging practices, whether you do or don't, for initial meetings with prospective clients.
Perhaps it is just me but I have struck more than a few individuals who have called me for a phone consultation and afterward have asked that I meet them in person to discuss their cases in greater detail; something I have generally been more than happy to do. But then either they don't show up to the scheduled appointment or will discuss the matter at length for 1-1.5 hours to dredge as much free information from me as possible and then later call to say they have changed their minds about the investigation.
Perhaps one of the most annoying examples was of an individual with an 'urgent' case who wanted to meet me the following day to discuss the matter... a public holiday... and of course failed to show or subsequently answer her phone.
And while this general sort of behaviour has annoyed me somewhat previously, I have just again struck an individual who has wasted my time by consistently changing days and times for meetings and just not being there on 2 occasions when she had not notified me of any change at all. What made her different from the others is that she would call me back later apologetic and with an excuse for not being there and an expression of still wanting to go ahead with the investigation as it was a 'priority' for her. She led me on for two and a half weeks before I finally said that she is just wasting my time and I cannot help her.
Anyway, I am now considering implementing a policy along the lines of the following:
I am happy to discuss a case with a prospective client by phone for 15-20 minutes. This should be sufficient time to give the prospective client enough information to make a decision as to whether they hire us or not.
If they then want to meet to discuss the matter at greater length I will expect payment of my usual minimum retainer (usually 2 hours billing) upon my arrival. This will be credited towards their account if the investigation continues but is non-refundable if they change their mind.
Perhaps this is too mercenary and may put off potential clients but I value my own time and do not like to have it wasted.
How do others deal with this problem?
Replies to This Discussion
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Permalink Reply by Phil Astley on -
Wouldn't life be great if we didn't have to deal with customers? I should say I have a slightly different focus from many, because as an accountant, clients usually want my services (if they do) on an ongoing basis - not just one off. The cost of getting the right / wong client is with us for a while. The other things that's different is I'm no salesman - just like most accountants.
Some time ago I went to a one-day course on selling just for accountants. We were asked how we do it. It was fairly standard - and we were told that was part of our problem. So I now have a different approach. I expect to have an hour-long chat with new customers. No charge. I'd rather get the right client than the wrong client. And instead of me telling them what I can do, much of the time is spent asking questions and digesting their answers. The key is to highlight their needs - and to get them to recognise them. If they do that, and if I can provide for those needs, then the rest is fairly simple. If not, at least they've got a clearer picture of what they're looking for.
We don't tell them a lot of detail at this stage - that's for the future (and chargeable) - if they take us on, and we take them on. But at the end of this time (there's a bit more to it - I've really simplified it) if both of us have a good feeling about things, then they should be a long-term client who gets real value from our relationship.
I don't know how relevant that is to your needs - I certainly understand the desire to move from "free" consultation to professional advice. I guess it's a question of building a procedure that works for both of you. And just so you know, the first time I met a new client after that course, we arranged a schedule of work worth $5,000 per year - 2 or 3 times a typical fee back then. The partner wasn't happy - but when we had our first meeting with them present, they too were blown away. She couldn't see how her friend had agreed to such a fee - but when she saw how it worked, the problems vanished.
Not all my jobs lead to such significant fees - but many do - people just don't know what's possible until they see the need. And for those who want straight accounting - well that's their choice. Sometimes we can see the need - it's just a question of getting them to see it as a real investment in their business.
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Permalink Reply by Cabal Investigations on -
In my industry most private clients are of the one-off, short term, variety. There is no ongoing relationship with regular work from them unlike from barristers & solicitors and some businesses we work with.
My desire isn't so much to move from free to professional advice as it is to stop having people waste my time. After all, by the time they want to meet to discuss the matter in person we already have established such things as whether it is something we can undertake and what our fees will be etc. What I don't want is to be used as a sounding-board/counseller for an hour and a half by someone who isn't going to retain my services. Something that they should already have made their mind up about prior to meeting me.
Perhaps my last experience was too much. This is where someone who had already verbally stated she wished to hire us to conduct an investigation on her behalf (regarding her husband who just walked out one day when she was at work, never to be seen again) changed a scheduled meeting no less than 6 times in a 2 week period as well as just not attended two times when she hadn't rescheduled...
Anyway, I think I might try the approach that if a prospective client wants a no-obligation meeting to discuss their case, I'm happy to spend 15-20 minutes on the phone with them or they can come to my office. After that, it's either time to retain our services or go elsewhere.
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Permalink Reply by Debra, VBIZNZ Administrator on -
I think its a good move and moves you out of the time-waster bin. When people know that you are being serious, then you only get those that are serious. Its a bit scary at first but does work.
I still do free consultations and I give as much free information as I can plus business cards and any freebies I have at the time, they don't need to take on my services as I know that they will praise me out there for giving them my time and free information. A bit of marketing really. In saying free though, there is crucial information that I do not share with anyone.
My times are limited too, and if I'm not available when they are, then its not going to happen. Usually they find a way to be free when I am. Also, I'm booked up for at least two weeks ahead, so there's another deterrent for time-wasters.
Using the phone is a good idea too, I have pertinent questions that I ask when I do initially talk to people and that helps in building the fit or non-fit between potential client and myself.
Its all learning and it certainly took me a few years to get some things working well.
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Permalink Reply by Dean Stewart on -
Cable, I like the way you are now proposing to work and it makes sense. I'm setting up a 1 hour internet safety presentation with various schools and community groups in Christchurch. The presentation is for free, but parents will have enough information to be very concerned if they have an unmanaged internet connection, and want to book me in for my services in their home.
I also have a monitoring / filtering product ideal for the small business up to 30 staff. I haven't marketed it much as yet, as I'm still working on some details. But in cases where I visit businesses to explain the product, I won't charge.
If someone were to request a face to face meeting with me to talk about cyber safety products, I would have to be clear with the information I tell them, while ensuring it was not a session just to pick my brain. I guess making the client understand any potential costs for intitial meetings is the best approach.
Cabal Investigations said:In my industry most private clients are of the one-off, short term, variety. There is no ongoing relationship with regular work from them unlike from barristers & solicitors and some businesses we work with.
My desire isn't so much to move from free to professional advice as it is to stop having people waste my time. After all, by the time they want to meet to discuss the matter in person we already have established such things as whether it is something we can undertake and what our fees will be etc. What I don't want is to be used as a sounding-board/counseller for an hour and a half by someone who isn't going to retain my services. Something that they should already have made their mind up about prior to meeting me.
Perhaps my last experience was too much. This is where someone who had already verbally stated she wished to hire us to conduct an investigation on her behalf (regarding her husband who just walked out one day when she was at work, never to be seen again) changed a scheduled meeting no less than 6 times in a 2 week period as well as just not attended two times when she hadn't rescheduled...
Anyway, I think I might try the approach that if a prospective client wants a no-obligation meeting to discuss their case, I'm happy to spend 15-20 minutes on the phone with them or they can come to my office. After that, it's either time to retain our services or go elsewhere.
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Permalink Reply by Linda Fraser on -
I think you are on the right track, an initial phone or in person discussion (up to an hour) for free should be enough for the client to decide if they wish to proceed. If further meeting/discussion is required a retainer can be charged and offset against future costs if they retain your services.
Is it always necessary to meet these people off site? Do you have an office? if they meet you in your premises at least while you are waiting for no-shows you can be getting on with other things like admin or phone calls. Meeting people off site incurs travel costs and often a cuppa or a bite to eat as well as your time.
Around 90% of initial enquiries that I take lead to nothing - that's just the nature of the game, people are phoning around to find the perfect match to the job. However, for me, I don't leave my desk for those 90% so it costs me very little.
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Permalink Reply by Cabal Investigations on
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I have found a new way to feel better about timewasters - I blog about them on my totally anonymous blog where names have been changed to protect the guilty.
Perhaps not the most professional way but then again I don't give my blog address to clients and there is nothing there to identify myself, my clients, or even which country the anonymous investigator is from.
Just a range of amusing anecdotes...
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